Bears have dominated the Terra Classic (LUNC) market in the past 24 hours, lowering the price from an intra-day high of $0.00005797 to a 30-day low of $0.00005525. This negative trend shows that market bears are exerting significant selling pressure. At press time, LUNC was valued at $0.00005616, representing a 3.23% drop from its 24-hour high.
$LUNC will burn 90% Of token we will go straight to $100 🔥🔥#LUNC #TerraClassic #Binance pic.twitter.com/7MgS7HyqSE
— Terraport Finance (@TerraValidators) October 10, 2023
However, the project’s team’s 90% token burn projection may generate optimistic sentiment in the market, leading to a probable price rebound. This burn lowers the overall amount of LUNC tokens, creating scarcity and driving up market demand.
During the recession, LUNC’s market capitalization fell by 2.98% to $326.04 million, but its 24-hour trading volume increased by 99.07% to $12.1 million. This rise suggests a surge in trading activity and interest in LUNC during the drop. The increase in trading volume shows that investors perceive potential value in the token and are taking advantage of the reduced pricing.
LUNC/USD 24-hour price chart (source: CoinStats)
Keltner Channel bands on the LUNCUSD price chart are trending downward, with the top, middle, and lower bands reaching $0.00005914, $0.00005749, and $0.00005584, respectively. This pattern indicates that the price of LUNC is presently falling.
However, the emergence of green candlesticks at the lower band suggests that there may be some buying pressure at these lower levels, which may lead to a rally or reversal in the price of LUNC soon.
Furthermore, the Relative Strength Index (RSI) rating of 31 and rising indicates that LUNC may see an increase in buying activity and upward momentum. If the RSI continues to increase and surpass the 50 mark, it might show a move toward positive sentiment and a likely LUNC price upswing.
LUNC/USD 4-hour price chart (source: TradingView)
The negative trending Bull Bear Power (BBP) rating of -0.00000161 adds to LUNC’s future price worries. A negative BBP rating implies that bears have more market power, which might lead to additional price declines.
However, since the BBP trend is higher, the bears’ grip on the LUNC market may be slipping. If bullish momentum continues to develop, this move may present a chance for a price reversal in LUNC.
With a Rate of Change (ROC) rating of -3.65, the downward momentum in the price of LUNC strengthens. A negative ROC rating implies the price has dropped significantly over a certain period. This declining trend raises worries about LUNC’s future performance and shows that selling pressure will likely continue to dominate the market.
The price’s closeness to crucial support levels contributes to the pessimistic feeling around LUNC. If these support levels wear off, additional selling may ensue, potentially leading to a lengthy slump.
LUNC/USD 4-hour price chart (source: TradingView)
In conclusion, while LUNC faces challenges with bearish pressure and declining indicators, the upcoming token burn and increasing trading volume hint at the potential for a price rebound.
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